Wednesday, August 5, 2009
A reality check from across the pond
This article is related to the US housing market. However, it is certainly pertinent to what's happening in the UK. The writer's second case on the issue of mixes is interesting and ought to be born in mind. He talks about a "temporary seasonal change in the mix of houses sold--with 'organic sales' (normal, voluntary, free-market sales) becoming a larger percentage of the overall sales than they were in the winter, when distressed/foreclosure sales dominated...The organic sales market picks up each summer...But the season ends now. Every year, organic sales fall off of a cliff beginning in August primarily because kids go back to school in Sept...Never before in the history of the housing market have we had two markets pulling and pushing on each other like this."